Investors have a vested interest in your business. After all, they gave you money to invest in the company, hoping to make a return on that investment and push your startup toward profitability. This is why investor updates are such a necessary part of your business. They keep investors in the know, allowing them to track your progress and provide critical support as you grow.
The structure of an investor update is generally a combination of high and low highlights, financials, team updates, and core metrics. Investors want to see a clear and consistent format in each update, which can be delivered via email or as a presentation deck. The first time you create an investor update, it may require a bit of hunting and gathering to gather the right information. However, once you establish a process, it should become easier to prepare each month.
Highlights should include all the good things that happened in the past month (or whatever time period you choose to report on). This could be a record growth rate, a big new client onboarded or partnership formed, a product shipment, or any other notable achievement. For brevity, you can break these down by team or function, such as sales, marketing, or design.
While it can be tempting to only share the positives in an investor update, it is important to be honest and show transparency. Investors are more likely to trust and support a company that is open and transparent with them. Also, if they are making a decision between 2 companies to invest in and both are having a tough time, they will be more likely to give priority to the one that has been keeping them updated.